This is the key chart to understand the market. Let's break it all down and what is likely to happen in Q1 2022.
First things first, it was not BTC which broke down first today, it was the stock market. The Dow ranged sideways for 9 months, not being able to break the high established in May. This has been highly reflected in the price action of Bitcoin, which was not able to maintain the bullish uptrend for more than one month at a time.
Despite all the injection of monetary supply since March 2020, the health and uptrend of the stock market has not been healthy. The economy has not worked at full capacity, and a smoke screen of monetary policies cannot hide the state of the economy and of assets prices.
Governments in Europe have just in the last four months increased the cost of energy by 800% in some countries, having a negative effect far and wide, not only to people and industries, but also for BTC, considering the cost of energy for mining. This also involved Kazakstan. The consequences of crypto downturn involve geopolitical events, that are now just starting to add up together and which might further affect the market in 2022.
If you look closely at the slope (angle) of the 200 MA on the Dow Chart, you can see that it's flat. What is happening is that it signals indecision, and it does not happen very often in stocks. Just in the last month we had three tests of support, indicating that the Dow will probably break down in the near future.
The compression of prices create large movements, this is an observed phenomenon in the market and also in physics. Stored energy will at some point be released, if a threshold is reached. That's what is now happening with stocks, and the difficulty to break the key resistance is indicating that the large movement will be down.
The large portion of the correction will, according to my estimates happen in March. This coincides with numerous economic and cybernetic events such as the FED largest taper of bond buying or the LOG4J problem, which will further put pressure on stocks.
The correction can range from the 0.618 FIB ($25,000 ) down to the 0 FIB ( $14,131 , down -63% from the TOP), which can take BTC all the way back down below 25k. If it happens, it will be similar to the dot.com crash with the internet companies, only this time it will happen with crypto.
First things first, it was not BTC which broke down first today, it was the stock market. The Dow ranged sideways for 9 months, not being able to break the high established in May. This has been highly reflected in the price action of Bitcoin, which was not able to maintain the bullish uptrend for more than one month at a time.
Despite all the injection of monetary supply since March 2020, the health and uptrend of the stock market has not been healthy. The economy has not worked at full capacity, and a smoke screen of monetary policies cannot hide the state of the economy and of assets prices.
Governments in Europe have just in the last four months increased the cost of energy by 800% in some countries, having a negative effect far and wide, not only to people and industries, but also for BTC, considering the cost of energy for mining. This also involved Kazakstan. The consequences of crypto downturn involve geopolitical events, that are now just starting to add up together and which might further affect the market in 2022.
If you look closely at the slope (angle) of the 200 MA on the Dow Chart, you can see that it's flat. What is happening is that it signals indecision, and it does not happen very often in stocks. Just in the last month we had three tests of support, indicating that the Dow will probably break down in the near future.
The compression of prices create large movements, this is an observed phenomenon in the market and also in physics. Stored energy will at some point be released, if a threshold is reached. That's what is now happening with stocks, and the difficulty to break the key resistance is indicating that the large movement will be down.
The large portion of the correction will, according to my estimates happen in March. This coincides with numerous economic and cybernetic events such as the FED largest taper of bond buying or the LOG4J problem, which will further put pressure on stocks.
The correction can range from the 0.618 FIB ($25,000 ) down to the 0 FIB ( $14,131 , down -63% from the TOP), which can take BTC all the way back down below 25k. If it happens, it will be similar to the dot.com crash with the internet companies, only this time it will happen with crypto.
King